Virtuals introduces veVIRTUAL staking to enhance rewards for Genesis launchpad participants.

Virtuals has launched a new staking model for its native token VIRTUAL, transitioning from passive holding rewards to a vote-escrowed system that provides users with veVIRTUAL.

On a recent post, it was highlighted that holders of veVIRTUAL will earn 20% of all Virgen Point emissions, previously allocated based on token holdings. This shift positions veVIRTUAL as the main method for distributing rewards, determining eligibility for airdrops, and participating in on-chain governance within the Virtuals ecosystem.

In addition to receiving Virgen Points and governance rights, veVIRTUAL holders can now access “Genesis Airdrops.”

Genesis serves as Virtuals’ platform for launching new tokens. It features a presale period lasting 24 hours during which users can exchange Virgen Points and VIRTUAL to acquire a portion of 37.5% of the token supply, limited to 0.5%.

As a result, those holding veVIRTUAL will be eligible to receive a portion of the tokens introduced through Genesis. However, no additional information regarding the airdrop conditions has been provided.

Virtuals is currently valued at $2.07, maintaining a leading position among tokens related to AI agents, boasting a market cap exceeding $100 million and rising by 270% in the past month.

When users stake their VIRTUAL tokens, they receive the governance token veVIRTUAL. The amount of veVIRTUAL given is based on the quantity of tokens staked and the duration of the lockup, which can last up to two years.

The protocol has introduced a linear decay mechanism for veVIRTUAL balances, which gradually diminish over time until the stake is released. To enhance their conversion rate, users can opt for the “Auto Max-Lock” feature, locking tokens for the entire period and achieving a 1:1 ratio of veVIRTUAL for each VIRTUAL.

Virtuals has indicated that veVIRTUAL will also form the foundation for governance rights once on-chain voting processes are activated. This represents a shift for VIRTUAL from a passive utility asset to an active governance and rewards tool.

Users who stake VIRTUAL tokens within 24 hours of the recent announcement will be eligible for an additional reward, details of which will be unveiled the following day.

While further specifics remain unclear, this prompt signals the beginning of an extensive initiative aimed at promoting long-term staking participation.

The newly implemented staking mechanism reflects vote-escrow models that were first popularized by protocols like Curve Finance, where governance influence and reward distributions are determined by token lock periods rather than simple balances.

This design is intended to incentivize long-term commitment while minimizing speculative token trading.

Virtuals has characterized the launch as a shift away from passive involvement towards a structure that emphasizes sustained token engagement.